10
House
Bill 926
By:
Representatives Mills of the
25th,
Maxwell of the
17th,
Hill of the
21st,
Shaw of the 176th, Reese of the
98th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 7-1-285 of the Official Code of Georgia Annotated, relating
to the limits on obligations of a bank to one person or one corporation, so as
to exempt certain renewals or restructuring of loans from those limitations; to
provide for related matters; to provide for an effective date; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 7-1-285 of the Official Code of Georgia Annotated, relating to the
limits on obligations of a bank to one person or one corporation, is amended in
subsection (c) by deleting "and" from the end of paragraph (7), substituting ";
and" for the period at the end of paragraph (8), and adding a new paragraph to
read as follows:
"(9)
A renewal or restructuring of a loan as a new loan or extension of credit
following the exercise by the bank of reasonable efforts, consistent with safe
and sound banking practices, to bring the loan into conformance with the lending
limits of this Code section, unless:
(A)
New funds are advanced by the bank to the borrower, except as permitted under
this Code section;
(B)
A new borrower replaces the original borrower; or
(C)
The department determines that a renewal or restructuring was undertaken as a
means to evade the bank's lending
limit."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.